15 Defendants Plead Not Guilty in US Insider Trading Scheme Tied to Nearly 30 Mergers
Updated
Updated · Reuters · Jun 1
15 Defendants Plead Not Guilty in US Insider Trading Scheme Tied to Nearly 30 Mergers
2 articles · Updated · Reuters · Jun 1
Fifteen defendants entered not guilty pleas in Boston on Monday to securities fraud and related charges tied to a decade-long insider trading ring, with lawyer Nicolo Nourafchan and attorney Robert Yadgarov among those arraigned.
Prosecutors say the scheme began in 2014, when Nourafchan was at Sidley Austin, and spread through other major law firms as attorneys leaked confidential merger information in exchange for kickbacks from trading profits.
Thirty people have been charged overall, and authorities say the network made tens of millions of dollars by trading on tips about nearly 30 pending deals.
Nine people have already pleaded guilty, including cooperating witness Gabriel Gershowitz, while a judge also flagged a potential conflict because Lorenzo Nourafchan is paying his brother Nicolo's legal fees.
The case reaches beyond lawyers to traders and businesspeople, including a Florida insurance adjuster accused of trading on SailPoint's sale to Thoma Bravo and iRobot's later-collapsed deal with Amazon.
With a key lawyer now a cooperating witness, what other secrets of the scheme will be revealed at trial?
How did a decade-long insider trading ring operate undetected inside America's most prestigious law firms?
15 Charged in Boston Law Firm Insider Trading Case: Anatomy, Legal Risks, and Broader Market Implications
Overview
On June 1, 2026, 15 defendants, including Nicolo Nourafchan, pleaded not guilty in a major insider trading case in Boston. Authorities allege the scheme began in 2014, with Nourafchan at the center, supplying confidential information to Robert Yadgarov and others, who then profited illegally. The operation reportedly used coded communications to hide its activities, allowing it to continue undetected for years. While some defendants have already pleaded guilty, Nourafchan’s legal team plans a strong defense. This case highlights the complexity and secrecy of insider trading networks and the challenges in uncovering such long-running schemes.